Ockham Research: Apple shares are low hanging fruit

“Apple Inc. has enjoyed being a cornerstone of the bull market of recent history. Between July 2006 and the end of 2007, AAPL shares experienced dramatic and impressive price appreciation from about $50 to nearly $200. However, as is true of the market in general, 2008 has not been kind to Apple. At present, Apple is trading just above $130, an almost 35% drop in just over 3 weeks. This selloff has brought Apple shares back into an attractive enough level that it is now on Ockham’s buy list,” Ockham Research reports via Seeking Alpha.

“There are plenty of reasons to be excited about the future of Apple Inc. For starters, the stock is almost 35% cheaper than it was a month ago. Furthermore, Apple has developed a multifaceted entertainment and functionality based empire. iPods have revolutionized the music industry and almost single-handedly pushed the industry into a digital age. And they still control over 70% of the market for digital music players. iPhone is on the same path in the rapidly growing smart-phone arena, and Apple expects to meet sales goals of 10 million units by year end 2008. The Apple OS Leopard is selling quite well and is considered by many to be superior to rival Vista,” Ockham Research reports.

“To sum it up, Apple has the products that consumers want, and as seen with the newest software updates, they are constantly striving to improve. They have developed a large, growing, and devoted customer base, many of which own several of Apple products… AAPL is now an attractive candidate for those looking for a smart buy,” Ockham Research reports.

Full article here.

[Thanks to MacDailyNews Reader “Gavin” for the heads up.]

26 Comments

  1. Well, the only question today is whether those apples (or should I say, AAPLs) are ripe for the picking, or do they still have room to grow bigger and consequently lower (for the picking, that is).

    I had to bail out in the end, in order to avoid losing too much. Sitting on the sidelines, I’m still not sure if the time is right to jump in. I did put in a small portion (10% of what I had) into some AAPL options; being a Mac guy, I have infinite confidence in their execution and happen to agree with all these analysts. Still, as much as they are right in principle, the recession talk is still not over.

    Buying and holding AAPL, though, is definitely a no-brainer. Two years from now, we’ll be enjoying serious profits.

  2. If so, where are the buyers?

    Amazing how investors in a company that has come so far on the strength of the marketing skills of a Showman CEO are wise to the hype, know it will not last, and take their profits as soon as there is a hiccup.

    Well, hiccup came when the Showman lowered expectations and said sales of his toys may have hit their peak.

    If he had only said something about increasing the focus on the serious side of the business, reaction may have not been so costly to him and his shareholder hordes.

  3. @Really
    Visit an Apple Store for an hour. I promise you the Showman won’t be there, but his visionary products will be.
    Go ahead, play around with some of them.
    Then, go visit a MicroCenter and hang out for another hour
    and see if you can stay awake playing with the 3rd party conglomeration of pieced together hardware and software.
    Sure, we Mac users are fickle…but it’s the short term daytraders and portfolio leveling brokers who make the hiccups, pal. The true Apple lovers are in it long term.
    Look at AAPL the last 5 years and drool. Again, Apple’s numbers didn’t bring AAPL down, the world economy did.
    So, I say REALLY, to your “really”

  4. “may have not been so costly to him and his shareholder hordes.”

    I like to think of these as little gifts that appl gives its shareholders in the form of a buying op.

  5. Stop me if I am going to fast, I don’t understand all this doom and gloom predicted for Apple because the stock went down. Common sense and study of the market tells us that after Christmas is always a hard time. (For everybody) People don’t buy because they bought for 3 months straight prior to X-Mas day. It’s only the first month of the year and I am sure Jobs & Co. have many more surprises up their sleeves. Until then, exercise common sense.

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